India's Biggest Reinsurer Eying Iran

Meeting on the sidelines of the Asian Reinsurance Corporation's board of directors meeting in Bangkok on Friday, both sides emphasized the necessity of increasing their support for ARC, as reported by CII's website.

Asian Reinsurance Corporation is an intergovernmental organization established in May 1979 under the auspices of the UN-ESCAP. Membership is open to all state members or associate members of the United Nations Economic and Social Commission for Asia and the Pacific. It commenced operations in 1980.

Iran has always been a member of the board of directors in the corporation and currently Abdolnaser Hemmati is the chairman of the board, Financial Tribune reported.   

The CEO of the Indian reinsurance company expressed her company's interest in offering a variety of services needed in Iran's insurance market and her willingness to come to Iran and meet with insurance industry officials.

Hemmati pointed to the importance of business ties between the two countries and offered to take over a part of the Indian market's risks, saying that the head of GIC should pursue the matter.

GIC is the biggest Indian reinsurance company and entirely state-owned. The company has many branches in different countries. Its total premiums reached $2.8 billion, which put them in 14th place among international reinsurers.

Hassan Motesharrei, the deputy for reinsurance at the CII, noted that Iran had a good relationship with European reinsurers but when sanctions were imposed on Iran's economy over its civilian nuclear program, ties with European and international reinsurance companies reached its lowest level, banker.ir reported.

"After the lifting of sanctions, more than 300 meetings were held with international reinsurance brokers and we have held significant negotiations. However, CII is rather cautious when it comes to foreign reinsurance companies and brokers, and evaluates their weak and strong points," he said.

The official said currently eight foreign countries are active in Iran's reinsurance market.

"Brokers from Switzerland, Greece, France, Germany, Russia, India, England and China have a strong presence in Iran's reinsurance market and we are negotiating with brokers from newly-established insurance companies from other countries," he added.

Motesharrei mentioned the lifting of sanctions during President Hassan Rouhani's tenure as the most important factor behind the insurance industry's boom, allowing foreign brokers to be active inside Iran and Iranian insurance companies to confidently enter international insurance markets backed by reinsurers.